"As ugly as it seems, we'll ultimately be successful in the Middle East and the economy will recover in the second half," said Michael Strauss, who helps manage US$30 billion for Commonfund in Wilton, Connecticut. "To nibble at equities here makes sense."
Intel, the world's biggest maker of semiconductors, slid US$0.69 to US$16.01. The company said revenue for the first three months of this year would be as high as US$6.8 billion, below a January forecast for as much as US$7 billion.
Intel cited lower-than-expected sales of flash-memory chips, which retain data when power is turned off and are used in cellphones and digital cameras. The company hasn't seen signs of an economic recovery, Chief Financial Officer Andy Bryant said.
Texas Instruments Inc, the world's No. 1 maker of chips for cell phones, dropped US$0.15 to US$16.30. Applied Materials Inc, the biggest maker of chip equipment, fell US$0.09 to US$11.96.
Gilead Sciences Inc, the maker of HIV medication Viread, climbed US$2.66 to US$26.80. JP Morgan Securities Inc analyst David Molowa boosted his 2003 and 2004 earnings estimates for company because of higher drug sales.
Mandalay Resort Group, owner of the Mandalay Bay and Luxor casinos in Las Vegas, jumped US$2.39 to US$26.10. Analysts at Merrill Lynch & Co and CIBC World Markets boosted earnings estimates because the opening of a US$235 million convention center in January has led to higher room rates.
3Com Corp fell US$0.39 to US$4.11. The world's No. 3 maker of computer-networking equipment said third-quarter sales fell more than it forecast because of slumping demand in North America.
Cisco Systems Inc, the biggest maker of computer-networking equipment, shed US$0.24 to US$13.24.
UTStarcom Inc slumped US$1.28 to US$17.02.
The company, the biggest supplier of cordless phone systems to China, will sell about US$350 million of convertible debt. It will use some of the proceeds to repurchase 8 million shares owned by Softbank Corp at a 5 percent discount to yesterday's closing price.
Altria Group Inc dropped US$1.46 to US$35.82, adding to yesterday's 4.4 percent loss on concern it may lose a lawsuit accusing the company of lying about the health-risks of so-light cigarettes. An Illinois judge said he will deliver a verdict Monday in a class-action suit against the company's Philip Morris USA unit, the Wall Street Journal reported.
S&P 500 futures expiring in March rose 6.80 to 828.60 on the Chicago Mercantile Exchange. March futures on the NASDAQ-100 Index advanced 2.00 to 986.50. The index, a benchmark for NASDAQ's largest companies, gained 2.86, or 0.3 percent, to 986.82.
NASDAQ-100 tracking shares, called Cubes because of their QQQ ticker symbol, rose US$0.05 to US$24.54. The S&P 500 shares known as Spiders gained US$0.57 to US$83.32.
The Russell 2000 Index of smaller stocks advanced 0.34, or 0.1 percent, to 354.18. The Wilshire 5000 Total Market Index, the broadest measure of US shares, added 57.67, or 0.7 percent, to 7,857.32. Based on the Wilshire's change, the total value of US stocks rose US$69.20 billion.
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